Which of the Following Items Would Not Be Taken into Account

question 58

Multiple Choice

Which of the following items would not be taken into account when preparing a firm's cash budget?

• A) Depreciation on motor vehicles
• B) Provision for doubtful debts
• C) Discount allowed
• D) Depreciation on motor vehicles AND provision for doubtful debts

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Definitions:

Justification of Effort

The tendency for individuals to attribute a greater value to an outcome they had to put effort into achieving or acquiring.

Affect Heuristic

The tendency to consult one’s emotions instead of estimating probabilities objectively.

Estimating Probabilities

The process of determining the likelihood of a given outcome or event occurring.

Emotions

Complex psychological states that involve three distinct components: a subjective experience, a physiological response, and a behavioral or expressive response.